Italian 10 Year Bond Yields Move Lower Than Spanish Yields For First Time Since August

Yields on Italian 10-year government bonds moved to 4.906 percent while Spanish bonds were yielding 4.910 percent today—the first time Italian yields had fallen below Spanish yields since August 19, when concerns about the sustainability of Italian debt began to take off (h/t @ChrisAdamsMKTS).

This suggests that investor evaluations about Spain and Italy are changing.

Right now, PM Mario Monti has assuaged fears that the Italian government could not pass the necessary measures to address its overspending and corruption problems and passed a series of landmark austerity measures since taking office.

At the same time, Spanish unemployment hit a new record yesterday—23.3 percent in January—and worries are mounting that a Portuguese debt restructuring would devastate the Spanish banking system.